NexMed Announces $3.5 Million Milestone Payment
October 27, 2008--EAST WINDSOR, N.J.--(BUSINESS WIRE)--NexMed, Inc. (Nasdaq: NEXM), a developer of products based on the NexACT® technology, today announced that the U.S. Patent & Trademark Office has issued a Notice of Allowance for its U.S. patent application entitled, "Antifungal Nail Coat and Method of Use." The patent, when issued, will cover NM100060, a topical application of terbinafine formulated with NexACT® for the treatment of onychomycosis, and will provide coverage to April 17, 2026.
NexMed entered into an exclusive, worldwide agreement with Novartis in September 2005, under which Novartis assumed all development, manufacturing, and commercialization responsibilities for NM100060. Pursuant to the terms of the agreement, NexMed, having paid the issuance fee for the allowed U.S. patent, is now entitled to receive a $2 million milestone payment.
Mark Westgate, Chief Financial Officer of NexMed, commented, "In addition to the $2 million patent milestone, NexMed will also receive $1.5 million from Novartis for the remaining 50% of the patient enrollment milestone. This $3.5 million contractual payment will significantly strengthen our cash reserves."
NexMed management further noted that due to the extensive delay in the review and processing of NexMed's application for the patent, the U.S. Patent and Trademark Office added an additional 756 days to the life of the patent, which has already been included in the ‘coverage to' date.
About NexMed
NexMed, Inc. is leveraging its proprietary NexACT drug delivery technology to develop innovative topical pharmaceutical products that address unmet medical needs. For further information about NexMed, go to www.nexmed.com.
Statements under the Private Securities Litigation Reform Act: with the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties that may individually or mutually impact the matters herein described, including, but not limited to, obtaining regulatory approval for its products under development, entering into partnering agreements, pursuing growth opportunities, and/or other factors, some of which are outside the control of the Company.